Calif. Alleges Fraud By State Street Unit

California Attorney General Jerry Brown announced Tuesday that he is suing State Street Bank and Trust, a unit of State Street Corp., for alleged fraud against the state's two largest pension funds.

The lawsuit seeks to recover $200 million from the bank for alleged illegal overcharges and penalties against the California Public Employees' Retirement System, or Calpers, and the California State Teachers' Retirement System, or Calstrs, Brown said in a statement. "Over a period of eight years, State Street bankers committed unconscionable fraud by misappropriating millions of dollars that rightfully belonged to California's public pension funds," he said. "This is just the latest example of how clever financial traders violate laws and rip off the public trust."